Are Mid Term Stays the future?

Due to circumstances beyond anyone's control owners and property managers are having to adapt their business models. What better example than airbnb.

Airbnb have launched landing pages for sub lets https://www.airbnb.com/sublets

Typically airbnb properties are considered short term stays which are less than 30 days. The consumer is considered as a guest where as mid term stays are considered as being renters which are protected by tenants rights. Mid term stays are 30 days or more typically renters for 3 - 6 months. Long term renters are considered 12 months or more.

What are the benefits of Mid Term Stays?

Short term rentals will yield a higher return thats a fact but for example if we look at low season months which varies depending where the properties are based. Lets look at Thailand market. Low season May - October is low season and a lot of the villas have low occupancy rates and less interest. Maybe properties can adapt and during these months only focus on mid term stay market.

Obviously there is going to be reduced check ins, cleaning and less operational costs.

Legality - in some countries it is illegal without license to rent on the short term less than 30 days so mid term stays are covered legally.

Who is the mid term renter?

There has been a growing emergence of digital nomad travellers which is evident where you can see communities growing - Nomad List. A digital nomad typically wants a flexible rental so they look at airbnb. Whilst some pay a premium for staying one or two and nights some guests want to become a flexible renter and rent on a monthly basis but not commit to a yearly contract.

Business travellers - companies often send their employees to a city and they would typically book into a hotel or serviced apartment but now the airbnb mid term companies like Sonder, Lyric offer an alternative.

Students or Interns are sometimes looking for a place to stay for a few months.

People relocating to a new city would rather opt for a short or mid term stay property over a long term contract.

I think for any property owner, realtor, or property manager you need to define your seasons and establish what price you need to achieve. You can evaluate the market using airdna website for analytical information and price comparison of your competitors. The question is do you rent short term, Mid term or Long Term? Are we going to see a new wave of traveller or renter?